Parag Milk Foods to invest ₹105 crore to double cheese manufacturing capacity by FY28

The investment comes as India’s cheese market is projected to grow sharply over the next decade, supported by urbanisation, changing consumption patterns and expansion of the organised food service sector.

Parag Milk Foods Ltd. (PMFL) announced on Friday that its board has approved a plan to double its cheese manufacturing capacity from 60 metric tonnes per day to 120 mt/day, at an estimated capital expenditure of ₹105 crore. The expansion is expected to be completed by FY28 and will be funded through a mix of internal accruals and debt.

The Mumbai-based dairy company said the additional capacity is aimed at meeting rising demand for cheese and whey protein products. PMFL’s cheese brand, Go Cheese, currently holds approximately 35% market share and supplies retail and institutional customers, including hotels, restaurants, and catering businesses.

Chief Operating Officer Rahul Kumar Srivastava said the board approval reflects the company’s confidence in the long-term potential of the cheese category and that the expanded capacity would improve manufacturing efficiency and support product innovation.

The move is backed by broader industry growth projections. According to research firm IMARC Group, India’s cheese market is forecast to expand from roughly ₹129 billion in 2025 to around ₹620 billion by 2034, driven by urbanisation and the growth of the organised food service sector.

PMFL’s Go Cheese portfolio spans mozzarella, cheddar, processed cheese, cream cheese, pizza cheese and specialty variants serving both retail and foodservice segments. The company, founded in 1992, also markets products under the Gowardhan, Pride of Cows and Avvatar brands.

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